Presentation on theme: "Maximize an estate. Minimize the wait. Eliminate the hassle."— Presentation transcript:
1 Maximize an estate. Minimize the wait. Eliminate the hassle. The Estate MaximizerSingle Payment Whole Life Insurance
2 Estate Maximizer A Single Payment Whole Life Insurance Contract1 Issued by:Liberty Life Assurance Company of Boston,Member Liberty Mutual GroupHome office Boston, MAIn NY, form PI-PSP-9411-NY. Not available in KY and NJ.
3 Target MarketsConservative investors age 60-85, planning to leave money to heirs.People with large amounts of cash in(CD’s, Money Markets, Savings, etc.)Annuity contract holdersPre-1988 SPWL policyholdersNon-performing UL policyholdersMinimum distributions from qualified plans
4 Desires of SeniorsLeave a living memory (know that they are not forgotten)Leave the next generation better off than they wereSee that their grandchildren have excellent opportunitiesSee that their favorite charities continue to grow
5 But…They Still Have Needs Not to burden their childrenTo be cared for properlyTo access funds in case of an emergencyTo feel like they can still look after themselves
6 They Tend to… Be conservative in nature Dislike lengthy processes Dislike excessive fees or charges
7 They Want… Honesty Integrity To know that their best interest are being consideredFlexibility
8 So let’s look at some real life cases The following are a few actual Estate Maximizer cases which have been placed in the last couple of months.They represent real scenarios of today’s senior investor.
9 Male Age 70 $50,000 in VA Worth $35,000 Presently
10 Female Age 65 $100,000 in Fixed Annuity $70,000 Cost Basis 28% Tax Bracket $50,000 into EMaxHold out $8,400 to cover taxes$41,600 net into EMaxBuys $80,317 of DBGets $72,285 of ADBIn 5 years, CV of EMax worth $45,930Still have $80,317 of Tax Free DB$50,000 into 5 year fixed annuityIn 5 years, FA worth $62,308Only $12,308 will be gain versus $30,000 before splitTotal DB is $142,625, equal to an 8.5% ROI
11 Female Age 83 $179,000 in CD’sShe wanted to leave as much money as possible to her loved onesWanted to retain control for access purposesFull $179,000 in EMaxBought $234,436 in DBGave her $210,992 in ADB access3 Stand OutsAt 83, Advisor was able to get life coverageSince client had complete physical in previous 6 months, no para medical was needed, only APSWasn’t underwritten in 10 minutes, but the process was simple for the results gained!
12 Product Benefits For your clients: Safety – 100% Principal Guarantee Access to cashLife Insurance death benefit – more to heirsFor you the Advisor:10 minute jet underwriting1Control of underwriting is in your hands, not the company’sKnowledgeable back office supportWeekly commission paymentsSome restrictions apply
13 Safety Backed by the full strength of Liberty Mutual Guaranteed return of principal1Guaranteed account valuesGuaranteed initial death benefitGuaranteed to endow at age 10030 day free lookBarring loans or withdrawals. Not available in NY.Gross 5% in non-NY states and 4% in NY.10 Day free look in NY.
14 Attractive Returns Premium earns interest immediately Renewal rate declared on each anniversary and locked for the next contract yearAccumulations grow tax deferred.
15 Access to CashPartial withdrawals up to the greater of contract earnings or 10% of accumulation valueLow cost loansInterest 4% charged; 4% creditedPrincipal 6% charged; 4% creditedExtended Care Benefit1Qualified medical stays - 45 out of any continuous 60 day periodInsured or insured’s spouseWithdrawal charges waivedNot available in SC or NY
16 Accelerated Death Benefit1 Up to 90% of death benefit (max $250,000)Payable while alive if terminally ill or chronically illChronically ill defined as unable to complete 2 of 6 ADL’sTerminally ill, less than 24 months to live – insured onlyAccelerated benefits not taxable under current lawFree Riders.May be different by state.
17 Life Insurance Death Benefit Immediate increase in estate value – more to heirsPasses income tax-free under current tax lawEstate tax-free if set up correctly – please consult with a tax advisor.
18 10 Minute Jet Underwriting EligibilityStay within min and max premium guidelines“NO” answers to all parts of question 9MIB inquiry does not prompt further investigation
19 10 Minute Jet Underwriting Normal underwriting applies if:Premium exceeds jet issue limitsAny “YES” to question 9 or if MIB prompts further investigation.Normal underwriting in most cases does include blood and urine etc. It requires medical records review.
20 10 Minute Jet Underwriting Minimum Premium = $10,000Maximum Premium =AgeMax*45-59$50,00060-64$65,00065-8081-85$100,000$25,000Larger amounts available with normal underwriting.
21 10 Minute Jet Underwriting “NO” answers to question 9.9. Has the insured been:A. Hospitalized or surgically treated within the last five years for heart disease or heart failure?Yes NoB. Treated within the last 5 years for cancer?C. Diagnosed with or treated within the last 10 years by a member of the medical profession for: heart attack, stroke, mini-stroke, vascular and circulatory disease, Alzheimer’s disease, dementia, or abnormal chest X ray?D. Diagnosed with or treated within the last 2 years for a hip fracture?E. Declined, refused or turned down for life insurance?
22 It’s as Easy as1) Complete the Application for Life Insurance and the Signature Page. Be sure to write in your Agency name, telephone number and fax number2) Fax the white copies in the following order to(It is not necessary to attach a cover sheet or call ahead)A) Application for Life InsuranceB) Signature Page3) A Liberty representative will call you within 10 minutes to let you know if the policy can be “Instant Approved.” However, if you do not hear from us after 15 minutes, please call our Service Team at
23 Things to Know Issue ages 0-85 (age last birthday) Issue Classes: Standard and Class A2nd to Die Option availableModified Endowments (MEC) – taxes and penalties may apply for loans or withdrawals before 59½.7 year surrender periodAgesYear12345670-80% of Single Premium7%6%5%4%3%2%81-85
24 The Choice is Yours (Illustrative Results After One Year) Assumes $30,000 principal, 2.0% net interest, 33% tax bracketTaxableTax-DeferredIncome Tax-Free1Principal$30,000Value After One Year$30,600Current Taxes$198$0After Tax Value$30,402Deferred Taxes to HeirsAfter Tax Value to HeirsTotal Benefits to Heirs$57,9212Additional Benefits to Heirs$27,321Account value grows tax-deferred. Death benefit passes income tax-freeInitial death benefit for a female age 65
25 About Liberty Liberty Mutual Group1 $56 billion in consolidated assets Nation’s largest writer of workers compensation6th largest property & casualty insurerA (Excellent) AM BestA (Strong) Standard & PoorsLiberty Life1A wholly owned subsidiary of Liberty Mutual GroupLeading writer of Life Insurance through banksTop ten writer of Structured Settlement AnnuitiesA- (Excellent) AM BestAs of 12/31/2002